The SPX declined 15.32 points yesterday to close at 848.18. TOT daily traders came into the session 100% short, went another 100% short on the opening, and have carried the position overnight and into today.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 7468.51 cumulative SPX points compared to a gain of 389.25 points in the index over the same period.
The super long term perspective for the stock market remains bearish.
The long term model remains neutral, and the short term model remains bearish.
Both seasonal and cyclical factors are the most bullish components of today’s daily model readings. Momentum and some unique proprietary factors are the most bearish. Very little is neutral – except that these divergent components (and numerous others) make the model itself neutral. TOT daily traders come into today’s session 200% short. Lower your stop dramatically to SPX 850. If the SPX declines to 840 before that happens, lower your stop to SPX 845. And for each additional 5 point decline, lower your stop an equivalent 5 points. If not stopped out, carry your position overnight and into tomorrow.
In the absence of dramatic news from Iraq (yeah, like such an absence of news has any real possibility of happening!), I’d expect the market to drift a bit higher in the next few days, and then sell off sharply. But the significance of the Iraqi war developments makes any projections very speculative.
Thanks for the opportunity to be of service, and I’ll email you again in 24 hours – or sooner if circumstances warrant.
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